Financial Advice UK - Pensions News - Older people ignore pensions crisis

It has been revealed that the Chancellor Alistair Darling held talks with some of the UK largest banks yesterday in a bid to try and avert a banking crisis in the UK. The meeting was attended by...
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Pensions News - Last Updated Thursday 9th August 2007

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Older people ignore pensions crisis

Thursday 9th August 2007

According to a new survey, older people are ignoring the message over the predicted pensions crisis.

The research, conducted by financial services company Edward Jones, revealed that 30 per cent of people aged 45 to 54 and 12 per cent of those over 55 had not started saving for their retirement.

Andrew James, retirement planning manager at Edward Jones, commented: "The most worrying aspect is the high proportion of middle aged people who have made no provision for their retirement.

"They are the very category who will find it most difficult to make adequate provision simply because time is running out.

"Those people are from a generation brought up to believe the state would provide them with a good standard of living in their retirement which is simply not the case today."

However, it seems that younger generations are getting the message where their elders and betters are not - 46 per cent of 25 to 34-year-olds and 57 per cent of those aged 35 to 44 were already saving for when they retired.

Mr James added: "The encouraging findings are younger people seem to be getting the message about saving for their retirement, with nearly half those aged 24 to 34 claiming to have started to do so.

"It is vital both the government and all those involved in the pensions industry do all they can to keep driving the message home.

"We would also like to see clearer guidelines on pension rules to allow the industry time to talk to people about saving for the long-term and helping to educate individuals in the UK about how tax efficient saving for retirement can be - and the earlier people start the easier it will be!"